Buru Energy Ltd has applied for a production license for the Rafael domestic natural gas project in Western Australia’s onshore Canning Basin. “The application for a PL is an important step in establishing the regulatory tenure required to develop and produce from the Rafael field. It follows the recent independent assessment of 15.25 MMboe of 2P reserves for the two-well foundation development and the referral of the project to the EPA WA [the Environmental Protection Authority of Western Australia]”, the West Perth-based early-stage oil and gas developer said in a stock filing.
“Together, these milestones materially strengthen Rafael’s technical and regulatory foundation and maintain momentum towards the 2027 drilling program for the Rafael 1H and 2H production wells followed by first gas production in early CY 2029, subject to regulatory approvals and project funding”.
Rafael, under exploration permit 428, is expected to produce 300 metric tons of liquefied natural gas per day, equivalent to 18 million cubic feet per day of raw gas, according to Buru. It would also produce liquefied petroleum gas and condensate products.
“Buru’s 100 percent owned Rafael Conventional Gas Project is the only proven conventional gas and liquids resource in the greater Kimberley region. It is a compelling opportunity to establish a new local source of reliable energy in the region”, it said.
Earlier this month Buru said it had referred the project to the EPA WA. The company expects a decision from the state agency by yearend.
“Following the public comment period, the EPA WA will decide whether or not to assess the project. Proposals that do not have a significant environmental impact do not meet the criteria for assessment by the EPA WA”, Buru said October 5.
The referral to the state agency “de-risks the project and maintains the timeline towards a Final Investment Decision in 2H CY 2027”, Buru said.
The initial development has been independently assessed to contain 15.25 million barrels of oil equivalent (MMboe) proven and probable (2P) reserves, with potential for 65.74 billion cubic feet (Bcf) of sales gas.
The evaluation by Calgary, Canada-based Sproule ERCE covered Rafael’s “foundation development” only, which includes the two production wells and a modular LNG and liquids processing facility, Buru said September 11.
Based on results from the Rafael 1 discovery, seismic data and reservoir modeling, Rafael has been evaluated as having 1P reserves of 5.28 MMboe including 22.74 Bcf of sales gas. 2C contingent resources totaled 21.2 MMboe. “Sproule ERCE’s best-case production forecast, based on a two-well development, supports an 11 MMscfd plateau for approximately 14.9 years, with production remaining at or above plant turndown for approximately 20 years”, Buru said.
“Beyond the initial development, the 2C contingent resources reflect the potential recovery with additional wells, compression and extension of facility life. These opportunities provide a clear pathway to increase total recovery and extend the value generated from the Rafael field as the project matures”. Under a co-development deal with Buru, Clean Energy Fuels Australia would own the downstream components including the liquefaction facility, as announced April 2, 2025.
source: rigzone.com